Gate terminal (main shareholders Gasunie and Royal Vopak) today announces that it has signed a financing agreement with the European Investment Bank (EIB) and four other banks that already participate in the syndicate of ten international banks which currently provide long term financing to Gate terminal. This additional financing agreement supports the funding of the expansion of the Liquefied Natural Gas (LNG) break bulk infrastructure and services at the Gate terminal in the Port of Rotterdam.

The investment in this break bulk infrastructure, first announced on 3 July 2014, is expected to boost the use of LNG as a cleaner alternative transportation fuel in the Netherlands and Northwest Europe. The new infrastructure will be located next to Gate terminal. Since 2011 the terminal enables overseas LNG import into Europe which enhances gas supply diversification and increases the security of supply.

The new financial agreement is an addition of EUR 76 mln to the existing long term debt financing program of Gate terminal of EUR 750 million, as originally established in 2008. Today the ceremonial signing of the financing agreement took place in Rotterdam in presence of Pim van Ballekom (EIB Vice President for the Netherlands), René Oudejans (Member of the Executive Board and CFO Gasunie), Jack de Kreij (Vice Chairman of the Executive Board and CFO Royal Vopak), Dick Meurs (Managing Director Gate terminal) and Paul Smits (CFO Port of Rotterdam).

The construction of the new break bulk infrastructure is scheduled to start later this year. Commissioning of the facility and commencement of the first services are scheduled for the first half year of 2016. Gate terminal will be expanded with an additional harbor basin, financed by the Port of Rotterdam, that enables LNG distribution for small scale use with a maximum capacity of 280 berthing slots per year. As the launching customer, Shell plays a key role in enabling the project.

In January 2014, Gate terminal has successfully launched a loading station for trucks and containers, with a total capacity of 5,000 trucks per year. The new break bulk facility will continue the further development of the terminal into a hub, from where LNG can be re-exported to other parts of Europe and around the world.

René Oudejans and Jack de Kreij jointly commented:
“We are proud that the European Investment Bank and a strong international group of reputable banks expanded their long term financing to Gate terminal. With this funding we can, in a disciplined way, step by step further develop Gate terminal. This new break bulk infrastructure will facilitate the usage of LNG as a low emission fuel all over Europe."

Pim van Ballekom said: “Gate terminal is essential for the security of energy supply in Europe. The expanded facility will not only benefit Rotterdam, but also enhance the supply capacity of an important alternative fuel for transportation and industry in Europe. The European Investment Bank is pleased to build on previous support for both Gate terminal and Maasvlakte and is committed to working with other banks to address Europe’s energy needs.”

The expansion of the financing facility will have a maturity in line with the existing financing which expires at the end of 2029. The European Investment Bank will finance EUR 38 million and the syndicate of four banks a maximum of EUR 38 million supported by an additional guarantee facility.

The project is key to facilitate LNG storage and to secure LNG supply in Northwest European ports, such as Gothenburg. The maritime connection between Rotterdam and these ports is regarded as a part of the EU ‘motorways of the sea’ concept and has therefore been selected for co-financing under the European Union's TEN-T program.

There are a couple more months until the end of 2014 but it is already clear that there has been more trade on the Dutch gas trading platform TTF (Title Transfer Facility), than during the whole of 2013. That’s shown by the spectacular growth in traded volume. Whereas the volume of trade for the whole of 2013 was 8,287 TWh, at the start of this month direct trade (OTC) figures already came to 9,182 TWh. The TTF sprinted ahead in the first half of 2014 and it is maintaining the lead. The growth figures show that the Netherlands has developed rapidly within Europe into one of the most attractive gas trading hubs.

TTF is front runner on European OTC for the first time
By far the most trading on the TTF takes place Over-The-Counter (OTC). This means the trading is done directly between the parties, either with or without the involvement of a broker. In Europe, two gas hubs (together accounting for more than 80%) are head and shoulders above the remaining gas trading platforms: these two are the British National Balancing Point (NBP) and the TTF. Until spring 2014, NBP came out top every month in OTC trade, but it has now been overtaken by the TTF. So much so that, calculated over the most recent gas year (October 2013 - September 2014) more OTC trade has taken place on the TTF than on the NBP. During September 2014, the figures showed 1,138 TWh on the TTF and 796 TWh on the NBP. A well-functioning TTF strengthens security of supply and also ensures that supply and demand work properly. This creates the conditions for optimal pricing.

In addition to OTC trade, remaining gas trading takes place via a Gas Exchange, mainly via the Inter Continental Exchange (ICE). Here too the TTF is buoyant; a record high was scored in September for the third time this year after February and June.

Income of € 876 million is € 113 million higher than in the first half of 2013, principally due to the termination of the repayment obligation with regard to the method decisions of GTS from the past.

Income normalised for the deducted repayment obligation on 2013 income, is € 2 million higher in the first half of 2014.

Income from new assets compensates efficiency discounts imposed by the regulator.

In the first half of 2014, capacities sold were at the same level as in the same period in 2013.

Due to the warm winter, the transported volume (621 TWh) was lower compared to the first six months of the record year of 2013 (752 TWh), which started with a cold winter. This did not have any impact on capacities sold and the related income.

At € 357 million, total expenses were 12% lower than in the first half of 2013 (€ 404 million) due to significant lower transport related energy costs.

Due to above mentioned developments and also lower financial expenses, the result after taxation increases from € 214 million in the first half of 2013 to € 357 million in the first half of 2014.

The normalised result after taxation in the first half of 2013 is € 297 million. In the first half of 2014, there were no effects that required normalisation.

Main developments

With two incidents, our safety performance in the field of pipeline damage remains below the signal value of six as set for 2014. The reportable frequency index was 5.3, whereas we had set a signal value of 4.0. Because we want to improve our performance with regard to accidents at work we have drawn up an improvement programme.

The large projects, such as the construction of the Beverwijk-Wijngaarden pipeline route, the expansion of the network in North Germany and the multi-year replacement programme, are all on track.

On 1 March, the new department Gasunie New Energy was set up. This department focuses on the development of sustainable activities in the field of energy, together with business partners where possible. One of the results so far is the letter of intent for the development of a Power2Gas installation in Delfzijl.

On 1 March, Han Fennema started as the new CEO of Gasunie. He succeeded Geert Graaf, who was acting CEO as of 1 September 2013.

On 19 May, Gasunie Zuidwending B.V. continued under the name EnergyStock B.V. A new name that better matches the growing international nature of the activities of the gas storage company. This gas storage in Zuidwending allows us to optimally adapt to the growing volatility in the gas and energy market, due to amongst others the expected increase in the supply of sustainable energy.

On 3 July, Gate terminal announced expanding its Small-scale LNG activities. The new facility is intended for the distribution of LNG for inland waterway transport, road transport, and industrial use.

Han Fennema, CEO Gasunie, about the results

"In the past half year, Gasunie again contributed to a reliable energy supply in the Netherlands and the surrounding countries. There were no interruptions in gas transport. As for safety, we will take additional measures to reduce the number of accidents at work. Our aim is to achieve a safe, reliable and, above all, affordable energy supply. We are convinced that energy partners will collaborate in new chains in order to make energy supply as a whole more sustainable. Gasunie wishes to play an active part in this endeavour. This year, we have therefore set up a new organisational unit: Gasunie New Energy. Together with partners, we aim to explore the feasibility of sustainable technologies that can be applied on a larger scale.

Together with our partner in Gate terminal, Royal Vopak, we have decided to expand the LNG facilities in Rotterdam. This is an important step towards making LNG more accessible as a clean and efficient fuel for our customers in the transport sector and industry. This expansion will also reinforce the already strong position of the Netherlands as a gas hub for Europe."

Gasunie and Royal Vopak announce today that their joint venture, Gate terminal, has taken the final investment decision to add LNG break bulk infrastructure and services to the terminal. The new facility in the port of Rotterdam is expected to boost the use of liquefied natural gas (LNG) as a transportation fuel in the Netherlands and Northwest Europe.

Highlights

Construction is scheduled to start this year; commissioning and commencement of the first services are scheduled for H1 2016

Terminal will be expanded with an additional harbour basin to enable LNG distribution for small scale use with a maximum capacity of 280 berthing slots per year

Shell has been contracted as launching customer

New infrastructure enables distribution of low emission fuel alternative to transporters all over Europe

Break bulk (or small-scale) services aim to split up large-scale LNG shipments into smaller quantities. This enables the distribution of LNG as a fuel for maritime vessels, ferries, trucks and industrial applications. The use of LNG as a fuel is expected to grow substantially following the introduction of stringent new emission regulations (SECA) for the marine sector in the North Sea and in the Baltic Sea from 2015. By using LNG as a fuel, barges, coasters, ferries, as well as heavy trucks, can reduce their carbon dioxide (CO2) emissions by up to 20%, their nitrogen oxide (NOx) emissions by up to 85%, while reducing sulphur and particle emissions to almost zero. For these reasons, the Dutch government and the European Union encourage the development of LNG as a transportation fuel.

In September 2011, Gate terminal, a joint venture of Gasunie and Vopak and located on the Maasvlakte in Rotterdam, started operations. Gate terminal contributes to diversifying the European gas supply by providing access to LNG originating from countries around the world. At Gate, LNG is received, stored, regasified and then fed into the Northwest-European gas grid. In January 2014, Gate has successfully launched a tank truck loading station for trucks and containers, with a total capacity of 5,000 trucks per year. Over the past year, Gate has also developed into a hub, from where LNG can be re-exported to other parts of Europe and around the world.

The Port of Rotterdam Authority is involved in this project with the design and construction of a dedicated harbour basin for LNG break bulk operations and has already introduced new regulations that allow LNG bunkering for inland barges and ship-to-ship bunkering of seagoing vessels. The commissioning and commencement of the first services of this new LNG infrastructure for tanker barges and other small tankers (with a maximum capacity of 280 berthing slots per year), are scheduled for H1 2016. By then, a whole supply chain for LNG will be available in the port of Rotterdam.

As launching customer, Shell plays a key role in enabling the project, which creates the conditions for the use of LNG as a transportation fuel to take off in Northern Europe. From Gate in Rotterdam, it will be possible for customers like Shell to supply LNG to bunker stations in the Wadden area, Scandinavia, the Baltics, but also to stations along the Rhine, Main and Danube – thus providing a low emissions fuel alternative to transporters all over Europe.

The new infrastructure at Gate terminal will also represent an important step in achieving the goals of the ‘Green Deal Rhine and Wadden’. This partnership between the Dutch government, business and knowledge institutes aims to promote green growth. With its extended break bulk facilities, Gate terminal will be at the basis of cleaner transport by road, inland waterways and coastal shipping throughout Northern Europe. Surveys indicate that the introduction of LNG as a transport fuel could bring considerable economic growth and employment.

The project is key to facilitate LNG storage and to secure LNG supply in Northwest European ports, such as Gothenburg. The maritime connection between Rotterdam and this area is regarded as a part of the EU ‘motorways of the sea’ concept and has therefore been selected for co-financing under the European Union's TEN-T programme.

Today at the annual Flame Gas Conference in Amsterdam, the Swiss Gaznat joined the 5 gas infrastructure companies from the Netherlands, Belgium, Denmark, Sweden and France which have committed to actively contributing to the development of a carbon neutral gas supply by 2050. Gas infrastructure enables the transport and storage of energy on a scale unmatched by other energy systems. It is as such essential to the achievement of the EU’s low-carbon ambitions.

Leaders of the independent European gas infrastructure companies Gasunie (Netherlands), Fluxys (Belgium), Energinet.dk (Denmark), Swedegas (Sweden) and GRTgaz (France) met in Amsterdam at the annual Flame gas conference, where the cooperation was further expanded when Swiss Gaznat was formally accepted as a new member. The CEO of Gaznat states: “We are proud to become one of the partners in this cooperation that aims to provide a 100% carbon-neutral gas supply in 2050. It is clear that we can all only benefit from working together.”

The companies have formed active working groups focussing on the following topics:

Biomethane and green gas certificates

Gas (CNG and LNG) as fuel for road and maritime transport

Power-to-gas

To start with, the infrastructure companies have mapped the regulatory framework for biomethane injection and brought key players together to explore ways to establish a common green gas certificate market that will link producers and customers together, including cross-border. The partners have exchanged experiences in upgrading biogas to biomethane to make it compatible with gas infrastructure specifications.

Additionally, the partners in this initiative exchange and discuss best practices and general business cases with regard to gas as fuel for transport A smarter and harmonised use of CNG and LNG technologies across Europe is required in order to release its green potential.

Finally, the partners are also exploring the potential of power-to-gas technologies that aim at further strengthening the link between electricity and gas systems. Power-to-gas technology makes it possible to store a temporary surplus of wind and sun energy in gas infrastructure, allowing it to be used at a later moment. In this way gas infrastructure delivers additional flexibility to the electricity system.

Unique fast-cycle gas storage with high injection and withdrawal rates, a switch time of under 15 minutes and a 30-minute nomination lead time

Gas infrastructure company Gasunie launches EnergyStock B.V., a company that facilitates flexibility services with its fast-cycle gas storage. EnergyStock B.V. is the new brand replacing Gasunie Zuidwending B.V. EnergyStock adds new services and opportunities to the market. It serves energy companies and traders with tailor-made solutions to optimise energy portfolios, to manage risks and to enhance trading possibilities. EnergyStock’s services are available at Europe’s most liquid hub, the TTF.

EnergyStock provides flexibility services for energy traders and energy companies in a rapidly changing landscape. Platforms for energy trading are growing and new, independent energy companies and private initiatives are entering the market. With its services the company enhances the performance of energy traders with asset-backed trading and speculative trading. It also serves energy companies who have a need for portfolio balancing and portfolio management. The name EnergyStock reflects the new strategy and the new positioning of the company.

Renewable energy requires flexibility products
One of the reasons for the growing need for flexibility is the increasing share of renewable energy sources such as sun and wind in the energy mix in the years to come. Renewable energy production is not able to offer the stability in energy supply that energy consumers need. Gas-fired power plants are ideal to cope with this volatility. Due to the fact that gas-fired power plants are very flexible in use and that gas is a relatively clean fossil fuel, a major contribution can be made to establish a sustainable energy supply that is stable at the same time. Power plants fired by natural gas are twice as clean as those using coal. EnergyStock can provide the flexibility that gas-fired power plants need.
Moreover EnergyStock has an important role to play in the storage of surplus energy from renewable energy sources. Via the innovative power-to-gas principle surpluses of renewable energy can be transformed into gas and easily stored.

EnergyStock: the power of flexibility
Engineered specifically for intra-day flexibility, EnergyStock’s underground gas storage is in a class apart from other, traditional gas storage facilities in Europe. EnergyStock operates the fastest gas storage facility in the world with significantly more cycles per year than traditional facilities, which mainly address a seasonal or peak pattern. EnergyStock’s injection and withdrawal specifications, high turnover rates and switch time of under 15 minutes from send-in to send-out (and vice versa) mean that it alone in Europe can provide the high-speed response needed to cope with the volatile patterns of the new energy world: intra-day flexibility available on demand.

Energy Academy Europe and Gasunie have concluded an agreement for a strategic co-operation in the area of research, education and innovation in energy. The agreement was formally signed yesterday at Gasunie by Bert Wiersema, director Energy Academy Europe, and Hans Coenen, director Strategy of Gasunie. The company’s current research activities will be transferred to EnTranCe (Energy Transition Centre), which was launched jointly with other partners under the lead of the Hanze University of Applied Sciences (Groningen), within the formal cooperation with Energy Academy Europe. EnTranCe serves as a testing facility to further develop innovations in (sustainable) production, distribution and transport of energy.

The participation of Gasunie is a boost for the contribution gas can make to a sustainable energy supply. It also strengthens the role Energy Academy Europe can play in education, research and innovation in a sustainable gas and energy infrastructure. In addition, it will ensure the further development of the international orientation of Energy Academy Europe.

As a result of the participation of Gasunie Energy Academy Europe has the opportunity to initiate and develop research and innovation with industrial knowledge partners across the entire gas and energy value chain, from upstream (production and exploration) to downstream (distribution and consumption).

Gasunie presented a new business entity at the Hanover Messe held this week: Gasunie New Energy. Together with its partners, Gasunie New Energy is working on the feasibility of sustainable technologies for large-scale application. Gasunie New Energy will occupy a connecting, commercial position with a focus on the necessary infrastructure.

The energy supply always involves three elements which must be in balance with each other: sustainability, reliability and affordability. Here the challenge is to be successful in all three areas in an energy supply which will see increasing interaction between different forms of energy. Energy infrastructure will play an important part in balancing supply and demand between these energy forms. Gasunie New Energy sees its role as a unifying one with gas infrastructure as its starting point.

Cooperation is a key word: new unions and business concepts will be necessary to realise the transition towards an ecologically and economically long-lasting and sustainable energy supply.

An early example of this type of cooperation is the Power-to-Gas initiative that will be co-signed today by Gasunie New Energy and a number of other partners. The initiative aims to implement a large-scale, fully integrated Power-to-Gas plant in Delfzijl in the north of The Netherlands. For further details, please see the press release issued by Energy Valley today.

With 1,365 TWh, record volume of gas transported to end users in the Netherlands and Europe (2012: 1,261 TWh)

€ 659 million invested in gas infrastructure (2012: € 510 million)

Net profit of € 464 million (2012: € 359 million)

Dividend payment of € 325 million to the Dutch State (2012: € 215 million)

N.V. Nederlandse Gasunie achieved solid results in 2013. Net profit amounted to € 464 million over 2013, with an invested capital of € 9,161 million. Gasunie’s sole shareholder, the Dutch State, will receive a dividend of € 325 million, for the benefit of Dutch society.

Record in gas transport

Due to the persistent winter weather in the first part of 2013, a record volume of gas was transported: 1,365 TWh (1,261 TWh in 2012). The system in the Netherlands and Germany worked well, and there were no problems relating to gas supply. Gasunie’s network in the Netherlands and north Germany functioned as an international hub and was thus able to continue to supply customers in the Netherlands and the surrounding countries. The Dutch gas roundabout was operating at full speed, and as a result the volume of gas transported abroad through the Dutch network increased by 13% compared to 2012.

Investments and maintenance

Investment expenses in 2013 amounted to € 659 million. In 2013, the expansion of the underground gas storage in Zuidwending and the construction of the German NEL pipeline between the Nord Stream pipeline and our German network were completed successfully. In the context of a multiple-year replacement program, a start was made on the preventive replacement and the renovation of the first ageing parts of the Dutch gas network. In 2014 and 2015, the new pipeline between Beverwijk and Wijngaarden and the new pipeline and compressor stations in north Germany, intended to increase the cross-border capacity towards Denmark, will be completed. This provides for the market demand for extra capacity in these parts of Europe.

Safety for society and staff forms the cornerstone of Gasunie’s activities. The expansion activities on the network in the Netherlands sadly led to an accident in November, in which an employee of one of our contractors died. Gasunie very much regrets this incident and, together with the parties involved, is taking measures to prevent similar accidents in the future.

Revenues and operating result

Compared to last year, Gasunie saw its realised revenues increase by € 21 million to € 1,527 million. This increase is mainly due to the extra revenues generated by new infrastructure projects. Decreasing revenues resulting from the efficiency discounts on the tariffs as determined by the regulators in the Netherlands and Germany could therefore be compensated. The normalised operating result (EBIT) in 2013 was approximately € 50 million higher than in 2012. Due to the cold first half of the year, energy costs came out higher. The increase in reported EBIT is to an important degree due to a one-off benefit in 2013, i.e., the release of the pension provision in the Netherlands.

Key figures

*) Adjusted for the effects on revenues of the method decisions 2010-2013, release of a part of the pension provision in 2013, and a one-off compensation received by Gasunie Deutschland in 2012.

Forecast

On the basis of current insights, for 2014, Gasunie is expecting an increase in the results after taxes from regular operational activities. Revenues will increase because the pay-back obligation relating to the past method decisions of GTS expired after 2013. In addition, the efficiency discounts, as determined by the regulators in the Netherlands and Germany, will be compensated by revenues from new assets. Operating expenses are expected to increase due to rising maintenance costs for the network.

Important role for gas and gas infrastructure

The social relevance of a well-functioning gas transport infrastructure is obvious. Gasunie manages vital infrastructure and the public needs to be able to rely on gas transport to be safe, reliable and affordable. In addition, Gasunie sees an important role for gas and gas infrastructure in the quickly changing energy landscape. Han Fennema, CEO of Gasunie: “With gas as a flexible partner of sustainable sources, we can make the transition to renewable energy provision reliable and affordable. We are convinced that natural gas and gas infrastructure play an important and connecting role in our sustainable energy future, in which cooperation between the various partners in the supply chain will be more and more important.”

]]>PRISMA to welcome three new shareholders to its companyhttp://www.gasunie.nl/en/news/prisma-uitgebreid-met-drie-europese-netbeheerders
http://www.gasunie.nl/en/news/prisma-uitgebreid-met-drie-europese-netbeheerdersThu, 05 Dec 2013 08:42:50 +0100

Three new shareholders from the UK and France to join PRISMA from January 2014*

PRISMA to launch new integrated secondary market functionality on its platform on 1 January 2014

From 1 January 2014, PRISMA will expand its circle of shareholders. Three further transmission system operators (TSOs), the British National Grid, the Northern Irish Premier Transmission and the French TIGF, will then be new shareholders of the PRISMA European Capacity Platform company*.

The new shareholders are the first to join the PRISMA company since its foundation one year ago. The PRISMA shares of all partners will be re-allocated based on the ENTSOG voting rights. TIGF will start offering transport capacity via the PRISMA platform from March 2014. National Grid and Premier Transmission are scheduled to market capacity via the platform in 2015.

Steve Fisher, Gas Charging and Capacity Manager at the British TSO National Grid, said on the occasion of the signing of the contracts. "National Grid is committed to fully implementing the European Codes and playing its full part in the development of an integrated EU gas market. We foresee that PRISMA will have an important and increasing role in the market. We have consulted with shippers and other stakeholders in the UK and there is widespread support for National Grid to adopt PRISMA as its joint capacity booking platform as envisaged in the CAM code. We are delighted to be joining the other TSOs in becoming a shareholder of this business."

Götz Lincke, Managing Director of PRISMA, welcomed the new shareholders and added: “With our early implementation of the CAM Network Code and the first PRISMA auctions in April 2013, PRISMA marked a major milestone towards an efficient and functioning European gas market. We are very pleased to welcome National Grid, Premier Transmission and TIGF in to our circle of shareholders and believe that the involvement of the new shareholders contributes to a liquid and integrated European Gas Market."

In order to support PRISMA to act as European platform operator for all the shareholders in accordance with ENTSOG’s Network Code on Capacity Allocation Mechanisms (NC CAM), the European Energy Exchange EEX will exit as a shareholder from 1 January 2014.

Moreover, from 1 January 2014, PRISMA will launch a new secondary functionality on its platform. The new functionality, which will be integrated into the PRISMA platform, will step by step replace the existing secondary platforms. With the new secondary market tool, shippers will be able to book primary and trade secondary transport capacity at European network points through one single platform.

"This new offer to the market, which comes only nine months after the launch of the PRISMA platform, shows that all of our involved partners are not only focused on the early implementation of the future European requirements but also take the needs of the market very seriously. The new secondary functionality is an important tool to simplify capacity trading and will bring significant benefits for energy traders across Europe", Götz Lincke said.

The Minister of Finance has appointed Mr. J.J. (Han) Fennema member of the Executive Board of N.V. Nederlandse Gasunie as of 1 January 2014. He will assume the position of CEO and chairman of the Executive Board as of 1 March 2014.

Han Fennema (1964) has had various management positions within the energy sector, amongst others at ExxonMobil and Eneco (member of the Executive Board). He is chairman of the Executive Board of infrastructure company Enexis. Besides his position at Enexis he is also president of the trade association Netbeheer Nederland, a position he has held since 2011.

As of 1 January 2014 the Gasunie Executive Board will consist of Geert Graaf (interim CEO), Han Fennema and René Oudejans (CFO). Geert Graaf has previously indicated internally that at some point he would like to leave Gasunie to focus on a new path in his career, having held many different positions within the company. Geert has agreed to the Supervisory Board’s request to brief the new CEO for a period of two months.

Rinse de Jong, chairman of the Supervisory Board: “The search for a CEO was a process that we undertook carefully and with due consideration. We are pleased to have found in Han Fennema an experienced director who has earned his position in the energy world and who can strengthen the leading position of Gasunie as a European infrastructure company further. We respect Geert Graaf’s decision to leave the company next year and are grateful to him for the excellent way in which he continues to fulfil the role of acting CEO’.

European Commission grants 34 million euro for the development of a small-scale LNG chain in Rotterdam and Gothenburg, accommodating LNG supply for cleaner maritime transport

The collaboration between the ports for the infrastructure enables shipping companies to switch to Liquefied Natural Gas (LNG)-powered vessels

LNG allows the shipping industry to meet the stringent 2015 emission requirements for the North Sea, English Channel and Baltic Sea

The LNG Rotterdam-Gothenburg project has been acknowledged by the European Commission as a priority project for European transport infrastructure development. The Commission grants 34 million euro (SEK 305 million) to develop small-scale infrastructure for liquefied natural gas (LNG) as an efficient and cleaner alternative for fuel oil and diesel in the North and Baltic Sea region. The Dutch-Swedish LNG collaboration involves the ports of Rotterdam and Gothenburg, together with gas infrastructure companies Gasunie (the Netherlands) and Swedegas (Sweden) and the international tank storage provider Vopak. The decision of the Commission represents a clear support for the realization of this initiative, which aims at creating a new supply infrastructure for LNG in the maritime region of North Sea and Baltic Sea by 2015. LNG Rotterdam-Gothenburg is considered to be one of EU Commission's most prioritised ‘Motorways of the Seas’ projects.

There are essential environmental benefits to be gained from using LNG in transport and industry. For shipping, LNG as fuel poses lower sulphur oxide, nitrogen oxide, carbon dioxide and particle emissions than conventional fuels. With LNG, shipping companies are able to meet the strict requirements of the Sulphur Emission Control Area (SECA), which prohibits any sulphur emission exceeding 0.1 per cent in the North Sea, English Channel and Baltic by 2015.

The LNG initiatives in the port of Rotterdam and in the port of Gothenburg form a north and west European chain for maritime LNG supply. In Rotterdam, Gasunie and Vopak own the Gate terminal, where large shipments of LNG from all over the world arrive. Both companies are planning to extend the Gate terminal site with LNG break-bulk facilities, allowing the export of smaller parcels of LNG for redistribution to satellite terminals, such as the planned terminal in Gothenburg. Vopak and the Swedish gas infrastructure company Swedegas are planning a small-scale LNG terminal in Gothenburg to serve as key supply location for both shipping and industry in Scandinavia.

The collaboration creates an LNG connection between the largest port in Europe and the largest port in the Nordic region. Realization of the project will secure LNG supply facilities for the shipping companies, which is an important condition for shipping companies considering to invest in new LNG-powered vessels.

M.M. (Martika) Jonk, partner at CMS Derks Star Busmann, Amsterdam, and W.J.A.H. (Willem) Schoeber, member of the Management Board of EWE AG, Oldenburg, Germany until 1 June 2013, have been appointed members of the Supervisory Board of Gasunie with effect from 1 October 2013.

It was previously announced that with effect from 1 January 2014, H.N.J. (Hans) Smits, CEO of the Port of Rotterdam Authority until 1 January 2014, will join the Supervisory Board of Gasunie in the role of chairman.

With the announcement of these appointments, the Supervisory Board will consist of the following individuals from 1 January 2014:

National gas network operator Gasunie Transport Services (GTS) has taken note of the final method decision and x-factor decision published today by the Dutch Authority for Consumers & Markets (ACM). In the method decision, the regulator determines the regulatory framework for the national gas transport network in the Netherlands for the years 2014-2016. The x-factor decision determines the annual productivity growth factor (to promote efficient operations) that GTS must apply to its tariffs. .

In its initial reaction, GTS feels that it is good that the design and structure of the method decision is consistent with earlier decisions and with the draft decision. This is beneficial to the predictability and stability of the regulatory framework. By introducing a system of revenue capping, the method decision will also present a robust framework towards rapidly changing European rules concerning the provision of services by national network operators.

Furthermore, GTS is disappointed that the regulator ACM has not recognised contributions from GTS with regard to a number of choices in the draft decision. The most striking example of this is the WACC (Weighted Average Cost of Capital). The way in which the WACC has been calculated does not recognise all capital costs comprehensively. GTS considers a properly determined return on cost of capital to be essential for safeguarding the quality of the provision of services also in the longer-term.

GTS is currently studying the final method decision and x-factor decision. GTS will shortly submit its tariffs for 2014 on the basis of these decisions.

Denmark is a leader in sustainable practices and, like other countries, relies on the flexibility provided by gas

On Monday 30 September, Denmark brought a new 100-kilometre gas transmission pipeline and a compressor station into use. This extension of the Danish national gas transmission network, from Egtved to the Danish-German border point of Ellund, links Denmark and Sweden to the European gas market via the network of N.V. Nederlandse Gasunie. As Gasunie’s infrastructure is reliable with good connections to international gas flows, for example from Norway and Russia, Gasunie is clearly a major international logistical gas centre.

Bringing the pipeline into use will put Denmark in the position of being able to import more gas via the Gasunie network. Gasunie Deutschland is also playing a major part in all this by extending its own network, so that the gas can make its way to Denmark and Sweden. As Denmark’s own production is declining, this is a necessary step in order to continue to have sufficient energy available. The Gasunie network will also play a crucial part in all this by integrating sustainable energy as affordably and as reliably as possible. Denmark in particular, which makes heavy use of solar and wind power, sorely needs the flexible support of natural gas.

Gasunie Director of Strategy, Hans Coenen said: 'We’re proud that Gasunie can make a significant contribution towards security of supply in Northwest Europe. By working together across borders, countries can rely on the flexibility of gas and we can facilitate a future energy supply founded upon sustainable practices.’